Correlation Between PAM Mineral and GTS Internasional
Can any of the company-specific risk be diversified away by investing in both PAM Mineral and GTS Internasional at the same time? Although using a correlation coefficient on its own may not help to predict future stock returns, this module helps to understand the diversifiable risk of combining PAM Mineral and GTS Internasional into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between PAM Mineral Tbk and GTS Internasional Tbk, you can compare the effects of market volatilities on PAM Mineral and GTS Internasional and check how they will diversify away market risk if combined in the same portfolio for a given time horizon. You can also utilize pair trading strategies of matching a long position in PAM Mineral with a short position of GTS Internasional. Check out your portfolio center. Please also check ongoing floating volatility patterns of PAM Mineral and GTS Internasional.
Diversification Opportunities for PAM Mineral and GTS Internasional
-0.21 | Correlation Coefficient |
Very good diversification
The 3 months correlation between PAM and GTS is -0.21. Overlapping area represents the amount of risk that can be diversified away by holding PAM Mineral Tbk and GTS Internasional Tbk in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on GTS Internasional Tbk and PAM Mineral is a relative statistical measure of the degree to which these equity instruments tend to move together. The correlation coefficient measures the extent to which returns on PAM Mineral Tbk are associated (or correlated) with GTS Internasional. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of GTS Internasional Tbk has no effect on the direction of PAM Mineral i.e., PAM Mineral and GTS Internasional go up and down completely randomly.
Pair Corralation between PAM Mineral and GTS Internasional
Assuming the 90 days trading horizon PAM Mineral Tbk is expected to generate 1.94 times more return on investment than GTS Internasional. However, PAM Mineral is 1.94 times more volatile than GTS Internasional Tbk. It trades about 0.06 of its potential returns per unit of risk. GTS Internasional Tbk is currently generating about -0.03 per unit of risk. If you would invest 11,432 in PAM Mineral Tbk on August 28, 2024 and sell it today you would earn a total of 18,968 from holding PAM Mineral Tbk or generate 165.92% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
PAM Mineral Tbk vs. GTS Internasional Tbk
Performance |
| Timeline |
| PAM Mineral Tbk |
| GTS Internasional Tbk |
PAM Mineral and GTS Internasional Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with PAM Mineral and GTS Internasional
The main advantage of trading using opposite PAM Mineral and GTS Internasional positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if PAM Mineral position performs unexpectedly, GTS Internasional can make up some of the losses. Pair trading also minimizes risk from directional movements in the market. For example, if an entire industry or sector drops because of unexpected headlines, the short position in GTS Internasional will offset losses from the drop in GTS Internasional's long position.| PAM Mineral vs. Merdeka Copper Gold | PAM Mineral vs. Aneka Tambang Persero | PAM Mineral vs. Bumi Resources Minerals | PAM Mineral vs. Timah Persero Tbk |
| GTS Internasional vs. PT Hasnur Internasional | GTS Internasional vs. Archi Indonesia Tbk | GTS Internasional vs. Cemindo Gemilang Tbk | GTS Internasional vs. PAM Mineral Tbk |
Check out your portfolio center.Note that this page's information should be used as a complementary analysis to find the right mix of equity instruments to add to your existing portfolios or create a brand new portfolio. You can also try the CEOs Directory module to screen CEOs from public companies around the world.
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